Data after UST’s failed depegging seem to suggest a return to interest in stablecoins.

In general, Stablecoins have suffered massive losses after the TerraUSD (UST) peg removal event. The event led the UST down from a once stable $1 parity to the current $0.06 per UST. Now, to fill the lost trust, Circle, the second largest stablecoin (USDC) provider, has taken several steps.

Circle published a blog post titled ‘How to Be Stable’ on May 13th. This post incorporates Circle’s commitment to trust and transparency with USDC.

have faith

Well, cryptocurrency exchanges have shown their faith in the second largest stablecoin within the ecosystem. Cryptocurrency Exchange OKX presentation Listing LUNA/USDC, SOL/USDC, DOGE/USDC, FIL/USDC, DOT/USDC, NEAR/USDC, APE/USDC, AVAX/USDC, ADA/USDC, SHIB/USDC on the spot market. As such, we continue to support the development of the USDC ecosystem.

Circle’s CEO, Jeremy Allaire, acknowledged these advances in a tweet on May 23rd. read:

“A flight for quality and safety expressed in the spot market of the top exchanges. More coming soon!!”

Such narratives can play an important role in providing some certainty in the midst of chaos. Well, it seemed to work with the volume upsurge It has increased by more than 24% over the past week. In addition to maintaining transparency, Allaire has additionally committed to weekly USDC reserve and liquidity operations reports.

“As promised a week ago, we now offer weekly reports on USDC reserve and liquidity operations,” Allaire said. Tweet. Allaire also shared. USDC Verification Report and go further said: “Over the past week, 8.6 billion USDC was issued and 6.3 billion USDC was redeemed, and the weekly net increase was 2.3 billion USDC.” The Circle CEO addition:

“What makes USDC such a great product is that it integrates seamlessly with our existing global banking systems, making it easy to create and use. As a result, customers can use it as a very efficient pipe between traditional electronic dollars and digital currency dollars.”

But consider the timing of this news. The “ICO Era” scam wallet was activated in 2018 as developers attempted to withdraw $22 million from USDC.

What is the impact?

Well, at least not in the short term. Here are some bullish signs. Exchange Net Flow reached an ATL of -$20,349,225.13. Thus, it indicates a bullish reversal in investor sentiment. The previous ATL of -$17,229,420.56 was observed on April 27, 2022.

Source: Glassnode

Continued outflow indicates strong holding sentiment and removes circulating supply from the market. The number of addresses with non-zero balances also skyrocketed.

glassnode studio usd coin number of addresses with a non zero balance

Source: Glassnode

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